Access life insurance benefits while you’re living
A terminal illness can create an immediate need for cash. With the Accelerated Benefit Rider* (ABR), you may qualify for access to a portion of your life insurance death benefit while you are living.
ABR allows advanced payment of the death benefit if you are:
- diagnosed by a physician with a terminal illness, which will result in death within 24 months; or
- confined continuously for 90 days in a nursing home and reasonably expected to remain there for the duration of your life
There is usually no premium charge for the ABR and usually no cost to add it to your policy.
How can you use this benefit?
The benefit proceeds you receive can be used in any way you wish, for example, to fulfill a lifetime dream, reduce existing debts or cover medical expenses during your illness.
One advanced lump-sum payment is available each calendar year until reaching the maximum lifetime benefit. The maximum lifetime benefit available is the lesser of 50 percent of the death benefit or $250,000.
Things to consider:
- Unlike conventional life insurance proceeds, accelerated benefits payable under this rider may be taxable
- Accelerated benefits under this rider may affect Medicaid or other government benefits or entitlements
- In certain situations, access to the policy’s cash value, if any, may be limited. Read the policy and the rider carefully
- We charge an administrative expense fee to process each claim
- A lien is established against the policy death benefit when you access this policy benefit. The lien accrues interest compounded daily and you may repay all or any portion of the lien at any time
Consult with your tax adviser or attorney about your specific situation. If you are interested in a free life insurance quote please contact us today 248-853-0930.
This information was provided by Cincinnati Life and pertains to their ABR form. This is not a policy. For a complete statement of the coverages and exclusions, please see the policy contract. All applicants are subject to underwriting approval. Products available in most states. Neither The Cincinnati Life Insurance Company nor its affiliates or representatives offer tax or legal advice.
Your personal umbrella policy: Increased policy limits… and more
Accidents involving common, everyday activities may result in a worst-case scenario. Being held legally liable for injury to another person or damage to their property could exhaust your home or personal auto policy liability limits, and cause financial ruin to your family. A personal umbrella policy works hand in hand with your existing underlying insurance, adding a layer of liability limits to protect you in today’s litigious society.
A personal umbrella liability policy offers vital coverage benefits, and for a relatively inexpensive premium compared to the amount of coverage purchased. Talk to your local independent agent to find out how a personal umbrella allows you to obtain:
- protection for claims for losses not covered by an underlying policy
- worldwide coverage
- rental car, special events and liquor liability coverage
- coverage for libel, slander, defamation or invasion of privacy
- coverage for loss of earnings while settling a claim
Review your insurance plan regularly, and seek your agent’s coverage recommendation.
An umbrella liability policy may be especially appropriate when you have certain exposures:
- Is there a potential hazard in your backyard? Swimming pools, trampolines and other meant-to-be-fun gear can cause serious injuries.
- Do you own a pet? When left unattended or without adequate safety controls, some pets become scared and aggressive. You could be held liable if your pet bites a neighbor or passer-by.
- Are there any young drivers in the family? Inexperienced drivers are at higher risk of being involved in auto accidents.
- Do you own a boat? Lawsuits can result from all sorts of water-related accidents, such as skiers being towed from your boat or from another boat. Improper and unsafe personal watercraft use accounts for most watercraft liability accidents.
- Do you have adequate auto insurance liability limits? Most standard auto policies insure you, your resident family members and those who use your car with permission. The possibility of a serious loss – and the need for umbrella coverage – is there.
These are just a few situations where you could be held responsible for claims for loss that exceed the liability limits provided by your personal auto or homeowner policy. A personal umbrella liability policy protects your financial assets and can make the difference in your ability to meet your responsibility to reimburse others for their injury or damage.
For more information on Michigan Umbrella Insurance please contact us 248-853-0930.
